Thursday, May 17, 2012


Shares market sometime could give you a wrong signal. Like last 2 days it was drop about 50 points and follow by next day it can up 12 points. Is it this signal told you yesterday you are sold at wrong time? How to justify right or wrong signal? Really confuse.

Some people may tell you, market drop give you a good chance to pick good shares. They further provide so many data about that good company and also provide you an analysis report about their future. It should not disappointed while market turn back.

Recently, I had read a report and found that the trade debtors more than 120 days registered big outstanding amount. On the same time their P & L, balance sheet all show steady. Is it a good company? Is it a good signal to buy in? I have no comment about that but I wanna to said, a good accounting people can table a very good report for you to analysis but actually the business is not that good.

Another company report also show everything positive but the investment does not really related to the turnover and profit. Because the main support is Human Resources. If one day the company can't recruit a group of talent people or existing manpower loss efficiency. The company may turn into negative. So, what kind of signal or data you should follow before you are decided to buy a shares.

Simple calculation like Warrant Buffet, choose a company monopoly the business. maybe you can gain some advantages. or maybe back to the future be a founder of google or apple. So that your return definite better than Warrant Buffet.

So, stupid and waste money investors always said drop 2 days is my chance to buy in. Smart people will spend the money for his own and help economic come back soon.

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